Consolidated Financial Results FY2015 Q2

Consolidated Financial Results FY2015 Q2 October 30, 2015 Rudolf van Houten Acting CFO & Group Financial Controller Important Notice Forward-Looking Statements This presentation contains forward-looking statements regarding Takeda s future business, financial position and results of operations, including estimates, forecasts, targets and plans. These forward-looking statements may be identified by the use of forward-looking words such as aim, anticipate, assume, believe, continue, endeavor, estimate, expect, forecast, initiative, intend, may, outlook, plan, potential, probability, pro-forma, project, risk, seek, should, strive, target, will or similar words, or expressions of the negative thereof, or by discussions of strategy, plans or intentions. Any forward-looking statements in this document are based on the current assumptions and beliefs of Takeda in light of the information currently available to it. Such forward-looking statements do not represent any guarantee by Takeda or its management of future performance and involve known and unknown risks, uncertainties and other factors, including but not limited to: the economic circumstances surrounding Takeda s business, including general economic conditions in Japan, the United States and worldwide; competitive pressures and developments; applicable laws and regulations; the success or failure of product development programs; decisions of regulatory authorities and the timing thereof; changes in exchange rates; claims or concerns regarding the safety or efficacy of marketed products or product candidates; and post-merger integration with acquired companies, any of which may cause Takeda s actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by such forward-looking statements. Neither Takeda nor its management gives any assurances that the expectations expressed in these forward-looking statements will turn out to be correct, and actual results, performance or achievements could materially differ from expectations. Any forward looking statements herein speak only as of the date of this document, and Takeda and its management undertake no obligation to update or revise any forward-looking statements or other information contained in this presentation, whether as a result of new information, future events or otherwise. Medical Information This presentation contains information about products that may not be available in all countries, or may be available under different trademarks, for different indications, in different dosages, or in different strengths. Nothing contained herein should be considered a solicitation, promotion or advertisement for any prescription drug including the ones under development. 2

Definitions of Disclosure Terms - "Underlying Growth" compares two periods of financial results under a common basis, showing the real performance of the business. - "Underlying Growth" excludes the impact of foreign exchange and exceptional items such as product divestments and acquisitions, impact of purchase accounting, amortization and impairment loss of intangible assets, restructuring costs and major litigation costs. - Takeda's management guidance consists of "Underlying Growth" of revenue, Core Earnings and Core EPS. The detailed definitions of Core Earnings and Core EPS are shown in the Appendix. Please note these terms are non-gaap items, used for internal evaluation purposes and are not audited. 3 On the Road to Sustained Growth Management Guidance to Be Achieved for the Two Consecutive Years of FY14 and FY15 Underlying Growth in FY15 H1; + 3.8% for revenue, +3.7% for Core Earnings, +7.9% for Core EPS Takeda's "Growth Drivers"; GI, Oncology and Emerging Markets - Growing at 10% Focus on Controlling Underlying Operating Expenses; FY15 H2 OPEX to be lower than FY14 H2 Project Summit remains on-track with full management commitment to achieve communicated savings Improvement in operating free cash flow but more work remains to be done 4

Reported Income Statement Reported Income Statement FY14 H1 FY15 H1 Change Revenue Gross profit S&M 851.4 904.0 +52.7 + 6.2% 604.4 646.6 +42.3 + 7.0% 205.4 225.4 +20.0 + 9.7% G&A 77.7 88.1 +10.3 + 13.3% R&D Amortization and impairment losses on intangible assets associated with products Other income Other expenses Operating profit Profit before tax Net profit EPS 156.5 161.4 +4.9 + 3.1% 63.2 63.0-0.3-0.4% 38.7 15.2-23.5-60.7% 23.5 13.6-9.9-42.2% 116.7 110.4-6.2-5.4% 113.1 102.0-11.1-9.8% 61.4 54.4-7.1-11.5% 78 JPY 69 JPY - 9 JPY - 11.2% 6

Underlying Growth: Revenue Underlying Revenue Growth Supports Full Year Guidance FY14 H1 FY15 H1 H1 Growth Q1 Growth Q2 Growth Revenue 851.4 904.0 + 6.2% + 8.5% + 4.0% Fx effects* 37.5 8.1 Divestments / Acquisitions -10.8-1.3 Underlying Growth Underlying Revenue 878.0 910.9 + + 3.8% + 6.1% + 1.6% *Adjustment applying a constant currency at 1USD=120JPY, 1EUR=130JPY and etc. 8

Growth Drivers Account for Half of Takeda's Sales; Growing at 10% Underlying growth GI* FY14 (vs FY13) 240.9 +10.4% +28.7% FY15 H1 (vs FY14 H1) Oncology 333.8 +4.0% +1.6% Growth Drivers Total** +10.0% Emerging Markets* 316.3 +8.1% +7.1% * Pantoprazole is included in Emerging Markets, but not in GI (Gastrointestinal), as it is a key driver in EM ** Total GI/Oncology/EM, eliminated duplications (e.g. ADCETRIS in EM and in Oncology) Growth Drivers Total** Takeda Total 49% 9 Growth Drivers Outpace LOE Decline Underlying growth 7.5-0.9% + 4.6%** + 40.4 CANDESARTAN - 29.3 AZILVA + 8.3 LOTRIGA + 5.5 BRINTELLIX + 4.8 Others + 3.2 +21.8 + 3.8% 910.9 878.0 FY14 H1 Growth Drivers* Others FY15 H1 * GI / Oncology / EM: See Appendix for products list in GI and Oncology. ** Growth (+4.6%) from the FY14 H1 total revenue (878.0 billion JPY) and grown (+10%) from the FY14 H1 Gross Drivers revenue (404.5 billion JPY). 10

U.S. and Emerging Markets Drive Sales Growth Underlying growth FY15 H1 Regional Revenue* vs. FY14 H1 Strong growth driven by the U.S. and Emerging Markets +1.5% Europe and Canada +7.1% Emerging Markets +4.7% Japan Others** -3.4% Japan Ethical +12.0% U.S. * Previously, out-license business (royalty and supply income) was excluded from each region and recognized as "others", but now allocated to each region. ** Current "Japan Others" include Japan OTC and some other business. 11 Emerging Markets H1 Underlying Growth is Robust Underlying growth Japan 271.9-3.4 % 29.8% U.S. 244.0 + 12.0% 26.8% Europe and Canada 156.0 +1.5% 17.1% 8.6% 17.6% Japan Others* 78.4 +4.7% * including Japan OTC and some other business 19.3-4.3% Middle East, Oceania & Africa Emerging Markets 160.6 +7.1% 33.5 +12.4% Russia +19.9% 47.3 +6.9% Brazil +1.0% 60.4 +8.5% China +8.9% Russia/CIS Latin America Asia 12

Growth from GI: ENTYVIO Uptake Supports Target of Over $2 bln Peak Sales Revenue 60.0 50.0 Emerging markets Europe and Canada U.S. ENTYVIO (Sales generated from 20 countries as of end of September 2015) Moving Annual Total sales @ Constant currency 40.0 30.0 20.0 10.0 0.0 2014 Jun. 2014 Sep. 2014 Dec. 2015 Mar. 2015 Jun. 2015 Sep. 13 Steady Growth of BRINTELLIX and ADCETRIS Revenue 20.0 BRINTELLIX ADCETRIS 25.0 Moving Annual Total sales @ Constant currency U.S. Japan Emerging markets 15.0 20.0 Europe 15.0 10.0 10.0 5.0 5.0 0.0 2014 Mar. 2014 Sep. 2015 Mar. 2015 Sep. 0.0 2013 Mar. 2014 Mar. 2015 Mar. 2015 Sep. 14

Underlying Growth: Core Earnings Underlying Core P&L Shows Positive Trend Underlying Revenue Underlying Gross profit S&M FY14 H1 FY15 H1 Change +3.8% 878.0 910.9 +32.9 + 3.8% 633.2 651.8 +18.6 + 2.9% 213.6 227.9 +14.3 + 6.7% G&A 88.4 88.2-0.2-0.2% R&D Other income Other expenses Underlying Core Earnings Underlying Core net profit Underlying Core EPS 155.1 159.7 +4.6 + 2.9% 12.0 9.1-2.9-24.2% 13.9 4.5-9.4-67.7% +3.7% 174.2 180.6 +6.4 + 3.7% 106.6 115.0 +8.5 + 7.9% +7.9% 136 JPY 146 JPY +11 JPY + 7.9% 16

Underlying Core Earnings Growth Supports Full Year Guidance Underlying growth Investment for new products Growth + 18.6-14.3 + 0.2-4.6 + 6.5 + 3.7% 174.2 + 6.7% - 0.2% + 2.9% OPEX + 4.1% vs FY14 H1 180.6 FY14 H1 Gross profit S&M G&A R&D Other income/expenses FY15 H1 17 Fully Committed to Project Summit Target FY15 H1 FY15-17 (each year) FY15-17 (cumulative) Cost savings 11* >20 avg. >120 Implementation costs 7 >15 avg. Up to 100 * FY15 H1 Savings Breakdown 150 58% Procurement and 42% Non-Procurement 40% Commercial, 32% R&D, 15% Production & Supply, and 13% G&A 100 5-year cumulative savings >20** >20** **Average of the next 3 years. >20** 50 0 28 62 34 34 FY13 FY14 FY15 FY16 FY17 18

Cash Flow and Debt Operating Free Cash Flow Well Ahead of Previous Year but Still Needs Improvement FY15 H1 Operating Free Cash Flow was +55.7 billion JPY, an increase of 30.1 bln JPY vs. FY14 H1 + 31.9 58.5 11.5 Net debt at the end of March* Operating Free Cash Flow + 55.7 + 70.8 Other** Net debt at the end of September* - 95.0 Dividends paid + 39.3 * Debt figures in this slide represent bonds and loans FX rate hedged basis. Cash and cash equivalents include short term investments which mature or become due within one year from the reporting date. ** Other includes purchase of treasury shares for ESOP and BIP, acquisitions and others. 20 Net Cash from Operating activities Capital expenditures

Debt Maturity Profile 200.0 USD* 150.0 JPY 119.4 100.0 50.0 100.0 140.0 120.0 130.0 60.0 0.0 FY15 FY16 FY17 FY18 FY19 FY20 *All USD debt is swapped into JPY. 21 Reported Forecast and Management Guidance

FY2015 Annual Reported Forecast Retained (billion yen) Revenue R&D expenses Operating profit Profit before tax Net profit for the year EPS Exchange Rate FY2015 Forecast* 1,820.0 330.0 105.0 115.0 68.0 87 yen Yen per USD 120 Yen per EUR 135 *Our operations are exposed to various risks at present and in the future, such as changes in the business environment and fluctuation of foreign exchange rates. All guidance in this presentation are based on information currently available to the management, and various factors could cause actual results to differ. 23 Committed to FY2015 Annual Management Guidance Underlying Revenue Low single digit Underlying Core Earnings Higher than underlying revenue growth Underlying Core EPS Higher than underlying core earnings growth Annual Dividend per Share 180 yen 24

On the Road to Sustained Growth Management Guidance to Be Achieved for the Two Consecutive Years of FY14 and FY15 Underlying Growth in FY15 H1; + 3.8% for revenue, +3.7% for Core Earnings, +7.9% for Core EPS Takeda's "Growth Drivers"; GI, Oncology and Emerging Markets - Growing at 10% Focus on Controlling Underlying Operating Expenses; FY15 H2 OPEX to be lower than FY14 H2 Project Summit remains on-track with full management commitment to achieve communicated savings Improvement in operating free cash flow but more work remains to be done 25 Appendix

Definition of Core Earnings and Core EPS Core Earnings - Core Earnings is calculated from operating profit by excluding the impact of exceptional items, such as purchase accounting, amortization and impairment loss of intangible assets, restructuring costs and major litigation costs. - Adjustment items are detailed on the next slide. Core EPS - Core EPS is earnings per share based on Core Net Profit that is calculated by excluding the impact of exceptional items that have the similar factors listed above and tax effects on them from Net profit for the period. 27 Adjustment Items of Core Earnings Adjustment items from Operating profit 1 Amortization of intangibles recognized through acquisition and in-licensing 2 Impairments of intangibles recognized through acquisition and in-licensing Note Amortization costs of Intangibles of launched product derived from corporate acquisition Intangibles of upfront payments and any milestone payment (e.g. stage-up, NDA, approval) derived from in-licensing contract Intangibles of platform technology Impairments of Intangibles (launched products and R&D pipeline) derived from corporate acquisition and in-licensing contract Goodwill 3 Other purchase accounting effects Inventory step-up amortization Fair value adjustment of contingent consideration 4 Profits and losses from the disposal of affiliates, business and others Disposal of businesses, affiliates, real estate and securities* * Adjustment item of Core net profit 5 Costs of major restructuring programs Integration costs Implementation costs 6 Gains and charges from legal settlements/judgments/fines and large sized litigation expense (payment to lawyer) 7 Gains and losses not related to underlying business performance which the company deems exceptional e.g. Actos settlement provision, litigation expense (payment to lawyer), etc. Global issues outside the healthcare sector beyond the Group s control (ex. disaster, etc.) Expense caused by product recall Government grants Tax refund/ dispute, etc. 28

Reported Income Statement - vs. FY14 Q2 FY14 Q2 FY15 Q2 Change Revenue Gross profit S&M 440.2 457.8 +17.6 + 4.0% 311.3 321.5 +10.2 + 3.3% 105.8 110.0 +4.2 + 4.0% G&A 40.7 41.8 +1.0 + 2.5% R&D Amortization and impairment losses on intangible assets associated with products Other income Other expenses Operating profit Profit before tax Net profit EPS 81.4 80.4-1.0-1.2% 32.5 29.6-2.9-8.9% 14.6 7.8-6.8-46.5% 12.4 6.6-5.8-46.9% 53.0 60.9 +7.9 + 14.9% 53.1 53.3 +0.2 + 0.3% 28.0 29.8 +1.8 + 6.3% 36 JPY 38 JPY +2 JPY + 6.6% 29 Underlying Core Income Statement - vs. FY14 Q2 FY14 Q2 FY15 Q2 Change Underlying Revenue 453.8 461.0 +7.2 + 1.6% Underlying Gross profit S&M 324.8 324.5-0.3-0.1% 110.2 111.1 +0.9 + 0.8% G&A 44.9 42.1-2.7-6.1% R&D Other income Other expenses Underlying Core Earnings 79.5 79.0-0.5-0.6% 3.8 2.5-1.3-35.1% 8.0 2.1-5.9-73.3% 86.1 92.7 +6.6 + 7.6% Underlying Core net profit 48.6 57.1 +8.5 + 17.4% Underlying Core EPS 62 JPY 73 JPY +11 JPY + 17.4% 30

Growth Drivers in GI and Oncology Growth Drivers in GI* Brand/Generic Name Launch** Drug Class Main Indications 1 LANSOPRAZOLE 1992/12 Proton pump inhibitor Peptic ulcers 2 AMITIZA 2006/4 Chloride channel activator Chronic idiopathic constipation 3 DEXILANT 2009/2 Proton pump inhibitor Acid-related diseases 4 ENTYVIO 2014/6 Humanized monoclonal antibody against α4β7 integrin Ulcerative colitis, Crohn s disease 5 TAKECAB 2015/2 Potassium-competitive acid blocker Acid-related diseases Growth Drivers in Oncology Brand/Generic Name Launch** Drug Class Main Indications 1 LEUPRORELIN 1985/5 LH-RH agonist Prostate cancer 2 VELCADE 2008/5 Proteasome inhibitor Multiple myeloma 3 VECTIBIX 2010/6 Anti-EGFR human monoclonal antibody Advanced or recurrent colorectal cancer 4 ADCETRIS 2012/11 CD30 monoclonal antibody-drug conjugate Relapsed or refractory Hodgkin lymphoma * Pantoprazole is included in Emerging Markets, but not in GI (Gastrointestinal), as it is a key driver in EM ** Year and month of the first launch by Takeda in any region. 31 Growth Drivers in GI and Oncology Underlying Revenue Growth Underlying growth FY14 H1 FY15 H1 Underlying growth ENTYVIO 7.3 35.5 +28.1 - DEXILANT 31.7 35.4 +3.6 +11.5% AMITIZA 16.3 18.9 +2.5 +15.4% TAKECAB - 2.0 +2.0 - LANSOPRAZOLE 52.5 47.2-5.3-10.0% GI 107.9 138.9 +31.0 +28.7% ADCETRIS 11.8 14.8 +2.9 +24.7% VECTIBIX 9.2 9.5 +0.3 +2.7% LEUPRORELIN 61.8 62.0 +0.2 +0.4% VELCADE 85.1 84.4-0.8-0.9% Oncology 168.0 170.6 +2.6 +1.6% 32

Underlying Core Earnings Growth at 3.7% FY14 H1 FY15 H1 H1 Growth Q1 Growth Q2 Growth Operating profit 116.7 110.4-5.4% - 22.2% + 14.9% Purchase accounting effects 63.5 60.1 Disposal of affiliates, business and others -25.2-0.3 Restructuring costs 13.9 6.8 Other exceptional gains and losses 1.0 0.4 Core Earnings 169.9 177.5 + 4.5% + 2.5% + 6.4% Fx effects* -0.4 3.3 Divestments / Acquisition 4.7-0.2 Underlying Growth Underlying Core Earnings *Adjustment applying a constant currency at 1USD=120JPY, 1EUR=130JPY and etc. +3.7% 174.2 180.6 + 3.7% - 0.1% + 7.6% 33 Bridge from Net Profit to Underlying Core Net Profit Net profit EPS FY14 H1 FY15 H1 Growth 61.4 54.4-11.5% 78 JPY 69 JPY - 11.2% Purchase accounting effects 50.4 42.8 Disposal of affiliates, business and others -18.1-0.1 Restructuring costs 10.1 5.1 Other exceptional gains and losses 1.2 3.8 Core net profit Core EPS 105.1 106.0 + 0.8% 134 JPY 135 JPY + 1.2% Fx effects* -5.6 9.2 Divestments / Acquisition 7.1-0.1 Underlying Core net profit Underlying Core EPS 106.6 115.0 + 7.9% +7.9% 136 JPY 146 JPY + 7.9% *Adjustment applying a constant currency at 1USD=120JPY, 1EUR=130JPY and etc. 34

Cash Flow FY14 H1 FY15 H1 Change Net profit Depreciation, amortization and impairment loss Decrease (increase) in trade working capital Income taxes paid Other Net cash from operating activities 63.2 56.0-7.2 97.7 95.0-74.1-58.3-20.7-13.9 18.6 16.1 84.7 95.0 +10.3 Acquisition of tangible assets -26.7-23.8 Acquisition of intangible assets -32.4-15.5 (Operating Free Cash Flow) (+25.5) (+55.7) (+30.1) Proceeds from sales of tangible assets 25.2 0.3 Proceeds from sales/redemption of investment and time deposit 57.6 3.0 Other 1.9-4.9 Net cash from (used in) investing activities 25.5-40.9-66.4 Payment for acquisition of treasury stock Dividends paid Other Net cash used in financing activities Net increase (decrease) in cash and cash equivalents* -17.6-22.3-71.0-70.8-17.6-5.2-106.1-98.3 +7.8 4.0-44.2-48.2 * Net decrease in cash and cash equivalents does not include effect of movements in exchange rates on cash and cash equivalents. 35 Average Exchange Rates for FY15 H1 Average Exchange Rates (JPY)* FY14 H1 FY15 H1 vs. FY14 H1 USD 102.45 121.91 19% EUR 139.00 134.16-3% RUB 2.90 2.14-26% CNY 16.51 19.54 18% BRL 45.84 37.88-17% -30% -20% -10% 0% 10% 20% 30% *Average of preceding month-end spot rates for each month of the period 36

Monthly Exchange Rates and Outlook Actual* FY14 FY15 USD EUR USD EUR Apr 103 141 120 130 May 102 141 119 130 Jun 102 138 124 136 Jul 101 138 123 138 Aug 103 138 124 136 Sep 104 137 122 136 average Apr-Sep 102 139 122 134 *Preceding month-end spot rates applied to each month of the period Outlook FY15 USD EUR average Oct - Mar 119 136 average Apr-Mar 120 135 (JPY) (JPY) 37 Impact of 1% Depreciation of Yen Impact of 1% depreciation of yen for Oct-Mar (hundred million JPY) FY15 USD EUR RUB CNY BRL Revenue 28 10 2 4 2 Operating profit 0-1 1 1 0 Core Earnings 4 2 2 1 0 38

2015/10/30